CoreCivic Reports Second Quarter 2024 Financial Results
CoreCivic reported strong Q2 2024 financial results, with total revenue of $490.1 million, a 6% increase from Q2 2023. Net income rose to $19.0 million, or $0.17 per diluted share. Adjusted EBITDA increased 16% to $83.9 million, while Normalized FFO per diluted share grew 27% to $0.42. The company saw higher occupancy rates and improved cost management. CoreCivic repurchased 1.3 million shares for $20.1 million and maintained a leverage ratio of 2.5x. The company also refinanced its debt, eliminating maturities until 2027. However, ICE will discontinue using the South Texas Family Residential Center from August 9, 2024. CoreCivic provided updated 2024 financial guidance, projecting net income between $42.0-$50.4 million and Adjusted EBITDA of $302.4-$308.4 million.
CoreCivic ha riportato risultati finanziari solidi per il secondo trimestre del 2024, con ricavi totali di 490,1 milioni di dollari, un aumento del 6% rispetto al secondo trimestre del 2023. L'utile netto è salito a 19,0 milioni di dollari, ovvero 0,17 dollari per azione diluita. L'EBITDA rettificato è aumentato del 16% raggiungendo 83,9 milioni di dollari, mentre il FFO normalizzato per azione diluita è cresciuto del 27% a 0,42 dollari. L'azienda ha visto tassi di occupazione più alti e una gestione dei costi migliorata. CoreCivic ha riacquistato 1,3 milioni di azioni per 20,1 milioni di dollari e ha mantenuto un rapporto di leva di 2,5 volte. L'azienda ha anche rifinanziato il proprio debito, eliminando le scadenze fino al 2027. Tuttavia, l'ICE interromperà l'uso del Centro residenziale familiare del Sud Texas a partire dal 9 agosto 2024. CoreCivic ha fornito una guida aggiornata per il 2024, prevedendo un utile netto compreso tra 42,0 e 50,4 milioni di dollari e un EBITDA rettificato di 302,4-308,4 milioni di dollari.
CoreCivic reportó resultados financieros sólidos para el segundo trimestre de 2024, con ingresos totales de 490,1 millones de dólares, un aumento del 6% en comparación con el segundo trimestre de 2023. La renta neta subió a 19,0 millones de dólares, o 0,17 dólares por acción diluida. El EBITDA ajustado aumentó un 16% alcanzando 83,9 millones de dólares, mientras que el FFO normalizado por acción diluida creció un 27% a 0,42 dólares. La empresa vio tasas de ocupación más altas y mejoró la gestión de costos. CoreCivic recompró 1,3 millones de acciones por 20,1 millones de dólares y mantuvo una razón de apalancamiento de 2,5 veces. La empresa también refinanció su deuda, eliminando las vencimientos hasta 2027. Sin embargo, ICE dejará de usar el Centro Residencial Familiar del Sur de Texas a partir del 9 de agosto de 2024. CoreCivic proporcionó una guía financiera actualizada para 2024, proyectando una renta neta entre 42,0 y 50,4 millones de dólares y un EBITDA ajustado de 302,4 a 308,4 millones de dólares.
CoreCivic이 2024년 2분기 강력한 재무 결과를 보고했습니다. 총 수익은 4억 9천 10만 달러로, 2023년 2분기 대비 6% 증가했습니다. 순이익은 1천 9백만 달러로, 희석 주당 0.17 달러에 달했습니다. 조정 EBITDA는 16% 증가했습니다 8천 3백 90만 달러로, 희석 주당 정상화된 FFO는 27% 증가했습니다 0.42 달러로 성장했습니다. 회사는 높은 점유율과 개선된 비용 관리 실적을 보였습니다. CoreCivic은 2010만 달러에 130만 주를 재매입했으며, 2.5배의 레버리지 비율을 유지했습니다. 이 회사는 또한 2027년까지 만기가 없는 부채를 재조정했습니다. 그러나 ICE는 2024년 8월 9일부터 남부 텍사스 가족 주거 센터 사용을 중단할 것입니다. CoreCivic은 2024년 재무 가이드를 업데이트하여 순이익을 4천 2백만에서 5천 40만 달러, 조정 EBITDA는 3억 2천 24백만에서 3억 3천 84백만 달러로 예측했습니다.
CoreCivic a rapporté de bons résultats financiers pour le deuxième trimestre de 2024, avec un chiffre d'affaires total de 490,1 millions de dollars, soit une augmentation de 6 % par rapport au deuxième trimestre de 2023. Le bénéfice net a augmenté pour atteindre 19,0 millions de dollars, soit 0,17 dollar par action diluée. L'EBITDA ajusté a augmenté de 16% pour atteindre 83,9 millions de dollars, tandis que le FFO normalisé par action diluée a progressé de 27% à 0,42 dollar. L'entreprise a enregistré des taux d'occupation plus élevés et une gestion des coûts améliorée. CoreCivic a racheté 1,3 million d'actions pour 20,1 millions de dollars et a maintenu un ratio d'endettement de 2,5. L'entreprise a également refinancé sa dette, éliminant les échéances jusqu'en 2027. Cependant, l'ICE mettra fin à l'utilisation du Centre résidentiel familial du Sud du Texas à partir du 9 août 2024. CoreCivic a fourni des prévisions financières mises à jour pour 2024, projetant un bénéfice net compris entre 42,0 et 50,4 millions de dollars et un EBITDA ajusté de 302,4 à 308,4 millions de dollars.
CoreCivic berichtete über starke Finanzzahlen für das zweite Quartal 2024, mit Gesamterlösen von 490,1 Millionen Dollar, was einem Anstieg von 6% im Vergleich zum zweiten Quartal 2023 entspricht. Der Nettogewinn stieg auf 19,0 Millionen Dollar, oder 0,17 Dollar pro verwässerter Aktie. Das angepasste EBITDA stieg um 16% auf 83,9 Millionen Dollar, während das normalisierte FFO pro verwässerter Aktie um 27% auf 0,42 Dollar zulegte. Das Unternehmen verzeichnete höhere Belegungsraten und ein verbessertes Kostenmanagement. CoreCivic kaufte 1,3 Millionen Aktien im Wert von 20,1 Millionen Dollar zurück und hielt ein Verschuldungsverhältnis von 2,5. Das Unternehmen refinanzierte auch seine Schulden und beseitigte Fälligkeiten bis 2027. Allerdings wird ICE die Nutzung des South Texas Family Residential Center ab dem 9. August 2024 einstellen. CoreCivic gab eine aktualisierte Finanzprognose für 2024 ab und erwartet einen Nettogewinn zwischen 42,0 und 50,4 Millionen Dollar sowie ein angepasstes EBITDA von 302,4 bis 308,4 Millionen Dollar.
- Total revenue increased 6% year-over-year to $490.1 million
- Adjusted EBITDA grew 16% to $83.9 million
- Normalized FFO per diluted share increased 27% to $0.42
- Occupancy rate improved to 74.3% from 70.3% in the prior year quarter
- Successfully refinanced debt, eliminating maturities until 2027
- Repurchased 1.3 million shares for $20.1 million
- Secured new management contract with State of Montana for additional residents
- ICE to discontinue use of South Texas Family Residential Center, impacting $156.6 million in annual revenue
- Expiration of leases with California and Oklahoma Departments of Corrections reduced earnings per share by $0.06
- Slight decline in ICE detention populations nationwide compared to Q1 2024
Insights
CoreCivic's Q2 2024 results show solid financial performance driven by higher occupancy and effective cost management. Key highlights include:
- Revenue increased
6% year-over-year to$490.1 million - Net income rose to
$19.0 million ($0.17 per diluted share) - Adjusted EBITDA grew
16% to$83.9 million - Normalized FFO per share increased
27% to$0.42
The company's improved occupancy (74.3% vs 70.3% last year) and cost reduction initiatives are yielding positive results. However, investors should note the upcoming closure of the South Texas Facility, which contributed
CoreCivic's capital allocation strategy is noteworthy, with continued share repurchases and debt reduction. The company's leverage ratio of 2.5x is within its target range, indicating financial stability. Overall, these results demonstrate CoreCivic's ability to navigate industry dynamics and maintain profitability.
From a legal perspective, CoreCivic's Q2 2024 results highlight several important points:
- The company's contract with ICE for the South Texas Family Residential Center is terminating on August 9, 2024. This facility shift from family detention to single adult detention in 2021 reflects changing immigration policies.
- CoreCivic secured a new management contract with the state of Montana, demonstrating its ability to maintain and expand state partnerships despite scrutiny on private prison operators.
- The company's debt refinancing, including the redemption of the 2026 Notes, has improved its debt maturity profile with no maturities until 2027.
These developments suggest CoreCivic is actively managing its contract portfolio and financial obligations to mitigate legal and operational risks. However, investors should monitor ongoing policy debates surrounding private prison operations, as these could impact future contract opportunities and regulatory environment.
CoreCivic's Q2 2024 results reveal interesting market trends:
- Federal detention demand remains strong, with ICE revenue up
10.5% year-over-year, despite a slight sequential decline. - The end of Title 42 restrictions in May 2023 has influenced detention patterns, but the full impact is still unfolding.
- State and local revenues are also increasing, indicating diverse demand across government levels.
- The labor market is stabilizing, with reduced costs for temporary staffing and overtime compared to last year.
CoreCivic's ability to secure a new contract with Montana while facing the loss of the South Texas Facility contract demonstrates the dynamic nature of the corrections market. The company's updated guidance suggests cautious optimism for the remainder of 2024. Investors should watch for further shifts in immigration policies and state budgets, as these factors will continue to shape the industry landscape.
Higher Occupancy and Cost Management Initiatives Drive Positive
Quarterly Financial Performance
BRENTWOOD, Tenn., Aug. 07, 2024 (GLOBE NEWSWIRE) -- CoreCivic, Inc. (NYSE: CXW) (CoreCivic or the Company) announced today its second quarter 2024 financial results.
Financial Highlights – Second Quarter 2024
- Total revenue of
$490.1 million - CoreCivic Safety revenue of
$455.4 million - CoreCivic Community revenue of
$30.3 million - CoreCivic Properties revenue of
$4.4 million
- CoreCivic Safety revenue of
- Net income of
$19.0 million ; Adjusted Net Income of$21.8 million - Diluted earnings per share of
$0.17 ; Adjusted Diluted EPS of$0.20 - Normalized FFO per diluted share of
$0.42 , an increase of27% - Adjusted EBITDA of
$83.9 million , an increase of16%
Damon T. Hininger, CoreCivic's President and Chief Executive Officer, commented, "CoreCivic carried its strong operating momentum into the second quarter of 2024. Revenue increased
"In addition to our solid quarterly financial results," Hininger added, "we are also proud of our continued progress toward our capital structure targets. During the quarter, we repurchased 1.3 million shares of our common stock for a total cost of
"Finally, we want to recognize the accomplishments of our South Texas Family Residential Center (South Texas Facility) in Dilley, Texas over the past decade. As we previously disclosed, U.S. Immigrations & Customs Enforcement (ICE) will discontinue using this facility as of August 9, 2024. The South Texas Facility was created in collaboration with ICE and a third-party lessor to address the unique challenges posed by then unprecedented levels of family immigration in 2014. This pioneering facility was initially designed to provide a family-oriented environment, featuring educational, medical, dining and athletic facilities. During 2021, this facility's mission shifted to detention of single adults. We appreciate the trust placed in CoreCivic to launch this unique facility, and we appreciate our excellent leadership and staff at the South Texas Facility, whom we have offered employment opportunities at other facilities within the CoreCivic portfolio."
Second Quarter 2024 Financial Results Compared With Second Quarter 2023
Net income in the second quarter of 2024 was
The increased adjusted earnings per share amounts resulted from higher federal, state, and local populations, particularly at our facilities serving ICE, combined with lower interest expense and a decrease in shares of common stock outstanding, both resulting from our capital allocation strategy. These earnings increases were achieved despite being partially offset by the expiration of our leases with the California Department of Corrections and Rehabilitation (CDCR) at our California City Correctional Center on March 31, 2024, and with the Oklahoma Department of Corrections (ODC) at our North Fork Correctional Facility on June 30, 2023, which collectively accounted for a per share reduction of
We continue to realize improvements in our cost structure, both as a result of operating leverage stemming from improving facility occupancy versus the prior year, as well as from other initiatives, particularly those related to labor attraction and retention. The costs of registry nursing, temporary labor resources, including associated travel expenses, overtime and incentives, declined meaningfully from the prior year quarter as well as sequentially.
Revenue from ICE, our largest government partner, increased
Earnings before interest, taxes, depreciation and amortization (EBITDA) was
Funds From Operations (FFO) for the second quarter of 2024 was
Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO, and, where appropriate, their corresponding per share amounts, are measures calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles (GAAP). Please refer to the Supplemental Financial Information and the note following the financial statements herein for further discussion and reconciliations of these measures to net income, the most directly comparable GAAP measure.
Business Updates
Capital Strategy
Share Repurchases. During 2022, our Board of Directors approved a share repurchase program authorizing the Company to repurchase up to
As of June 30, 2024, we had
Debt Refinancing. On April 15, 2024, we redeemed the remaining
Contract Updates
New Management Contract with State of Montana. On July 25, 2024, following a competitive bid process, we received a Notice of Intent to Award a new management contract from the state of Montana to care for additional residents at CoreCivic facilities. During the third quarter of 2024, we anticipate receiving 120 residents at our 1,896-bed Saguaro Correctional Facility in Eloy, Arizona, doubling the population from the state of Montana residing at this facility under an existing management contract. As of June 30, 2024, we also cared for approximately 1,000 residents from Hawaii, and nearly 600 residents from the state of Idaho at the Saguaro Correctional Facility. Should the state of Montana need additional capacity, the State may approve the utilization of any other facility we own or operate, subject to availability. The Notice of Intent to Award a management contract is an expansion of our relationship with the state of Montana, where we also manage the fully occupied company-owned Crossroads Correctional Center in Shelby, Montana for the state of Montana pursuant to a separate management contract.
South Texas Family Residential Center. As disclosed on June 10, 2024, we received notification from ICE that the agency intends to terminate an inter-governmental service agreement (IGSA) for services at the South Texas Facility on August 9, 2024. We lease the facility and the site upon which it was constructed from a third-party lessor, and we have provided notice of lease termination to the lessor, also effective August 9, 2024. Total revenue at this facility was
2024 Financial Guidance
CoreCivic previously withdrew its financial guidance during the second quarter of 2024. Based on current business conditions, we are providing the following financial guidance for the full year 2024:
| Guidance Full Year 2024 | |
| • Net income | |
| • Adjusted Net Income | |
| • Diluted EPS | |
| • Adjusted Diluted EPS | |
| • FFO per diluted share | |
| • Normalized FFO per diluted share | |
| • EBITDA | |
| • Adjusted EBITDA |
During 2024, we expect to invest
Supplemental Financial Information and Investor Presentations
We have made available on our website supplemental financial information and other data for the second quarter of 2024. Interested parties may access this information through our website at http://ir.corecivic.com/ under “Financial Information” of the Investors section. We do not undertake any obligation and disclaim any duties to update any of the information disclosed in this report.
Management may meet with investors from time to time during the third quarter of 2024. Written materials used in the investor presentations will also be available on our website beginning on or about August 26, 2024. Interested parties may access this information through our website at http://ir.corecivic.com/ under “Events & Presentations” of the Investors section.
Conference Call, Webcast and Replay Information
We will host a webcast conference call at 10:00 a.m. central time (11:00 a.m. eastern time) on Thursday, August 8, 2024, which will be accessible through the Company's website at www.corecivic.com under the “Events & Presentations” section of the "Investors" page.
To participate via telephone and join the call live, please register in advance here https://register.vevent.com/register/BIdd7601382fc644b791a9a7cfbbe4f556. Upon registration, telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number and a unique passcode.
About CoreCivic
CoreCivic is a diversified, government-solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. We provide a broad range of solutions to government partners that serve the public good through high-quality corrections and detention management, a network of residential and non-residential alternatives to incarceration to help address America’s recidivism crisis, and government real estate solutions. We are the nation’s largest owner of partnership correctional, detention and residential reentry facilities, and one of the largest prison operators in the United States. We have been a flexible and dependable partner for government for over 40 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good. Learn more at www.corecivic.com.
Forward-Looking Statements
This press release contains statements as to our beliefs and expectations of the outcome of future events that are "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. These include, but are not limited to, the risks and uncertainties associated with: (i) changes in government policy, legislation and regulations that affect utilization of the private sector for corrections, detention, and residential reentry services, in general, or our business, in particular, including, but not limited to, the continued utilization of our correctional and detention facilities by the federal government, including as a consequence of the United States Department of Justice not renewing contracts as a result of President Biden's Executive Order on Reforming Our Incarceration System to Eliminate the Use of Privately Operated Criminal Detention Facilities, impacting utilization primarily by the United States Federal Bureau of Prisons and the United States Marshals Service, and the impact of any changes to immigration reform and sentencing laws (we do not, under longstanding policy, lobby for or against policies or legislation that would determine the basis for, or duration of, an individual’s incarceration or detention); (ii) our ability to obtain and maintain correctional, detention, and residential reentry facility management contracts because of reasons including, but not limited to, sufficient governmental appropriations, contract compliance, negative publicity and effects of inmate disturbances; (iii) changes in the privatization of the corrections and detention industry, the acceptance of our services, the timing of the opening of new facilities and the commencement of new management contracts (including the extent and pace at which new contracts are utilized), as well as our ability to utilize available beds; (iv) general economic and market conditions, including, but not limited to, the impact governmental budgets can have on our contract renewals and renegotiations, per diem rates, and occupancy; (v) fluctuations in our operating results because of, among other things, changes in occupancy levels; competition; contract renegotiations or terminations; inflation and other increases in costs of operations, including a continuing rise in labor costs; fluctuations in interest rates and risks of operations; (vi) government budget uncertainty, the impact of the debt ceiling and the potential for government shutdowns and changing budget priorities; (vii) our ability to successfully identify and consummate future development and acquisition opportunities and realize projected returns resulting therefrom; (viii) our ability to have met and maintained qualification for taxation as a real estate investment trust, or REIT, for the years we elected REIT status; and (ix) the availability of debt and equity financing on terms that are favorable to us, or at all. Other factors that could cause operating and financial results to differ are described in the filings we make from time to time with the Securities and Exchange Commission.
We take no responsibility for updating the information contained in this press release following the date hereof to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events or for any changes or modifications made to this press release or the information contained herein by any third-parties, including, but not limited to, any wire or internet services, except as may be required by law.
###
CORECIVIC, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
| June 30, | December 31, | ||||||||||
| ASSETS | 2024 | 2023 | |||||||||
| Cash and cash equivalents | $ | 60,186 | $ | 121,845 | |||||||
| Restricted cash | 7,497 | 7,111 | |||||||||
| Accounts receivable, net of credit loss reserve of | 273,670 | 312,174 | |||||||||
| Prepaid expenses and other current assets | 39,446 | 26,304 | |||||||||
| Assets held for sale | 2,211 | 7,480 | |||||||||
| Total current assets | 383,010 | 474,914 | |||||||||
| Real estate and related assets: | |||||||||||
| Property and equipment, net of accumulated depreciation of respectively | 2,083,178 | 2,114,522 | |||||||||
| Other real estate assets | 196,059 | 201,561 | |||||||||
| Goodwill | 4,844 | 4,844 | |||||||||
| Other assets | 236,120 | 309,558 | |||||||||
| Total assets | $ | 2,903,211 | $ | 3,105,399 | |||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
| Accounts payable and accrued expenses | $ | 254,634 | $ | 285,857 | |||||||
| Current portion of long-term debt | 11,832 | 11,597 | |||||||||
| Total current liabilities | 266,466 | 297,454 | |||||||||
| Long-term debt, net | 1,007,148 | 1,083,476 | |||||||||
| Deferred revenue | 13,899 | 18,315 | |||||||||
| Non-current deferred tax liabilities | 88,501 | 96,915 | |||||||||
| Other liabilities | 79,676 | 131,673 | |||||||||
| Total liabilities | 1,455,690 | 1,627,833 | |||||||||
| Commitments and contingencies | |||||||||||
| Preferred stock – authorized; none issued and outstanding at June 30, 2024 and December 31, 2023 | — | — | |||||||||
| Common stock – authorized; 110,271 and 112,733 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively | 1,103 | 1,127 | |||||||||
| Additional paid-in capital | 1,726,768 | 1,785,286 | |||||||||
| Accumulated deficit | (280,350 | ) | (308,847 | ) | |||||||
| Total stockholders' equity | 1,447,521 | 1,477,566 | |||||||||
| Total liabilities and stockholders' equity | $ | 2,903,211 | $ | 3,105,399 | |||||||
CORECIVIC, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
| For the Three Months Ended | For the Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| REVENUE: | |||||||||||||||
| Safety | $ | 455,373 | $ | 421,743 | $ | 913,119 | $ | 839,393 | |||||||
| Community | 30,302 | 28,364 | 60,202 | 54,778 | |||||||||||
| Properties | 4,416 | 13,574 | 17,455 | 27,411 | |||||||||||
| Other | 18 | 1 | 19 | 102 | |||||||||||
| 490,109 | 463,682 | 990,795 | 921,684 | ||||||||||||
| EXPENSES: | |||||||||||||||
| Operating: | |||||||||||||||
| Safety | 348,121 | 335,726 | 698,219 | 664,124 | |||||||||||
| Community | 24,134 | 22,905 | 48,278 | 45,620 | |||||||||||
| Properties | 3,462 | 3,324 | 7,297 | 6,685 | |||||||||||
| Other | 18 | 53 | 44 | 116 | |||||||||||
| Total operating expenses | 375,735 | 362,008 | 753,838 | 716,545 | |||||||||||
| General and administrative | 33,910 | 32,612 | 70,375 | 65,291 | |||||||||||
| Depreciation and amortization | 32,145 | 31,615 | 63,875 | 62,657 | |||||||||||
| 441,790 | 426,235 | 888,088 | 844,493 | ||||||||||||
| OTHER INCOME (EXPENSE): | |||||||||||||||
| Interest expense, net | (17,110 | ) | (18,268 | ) | (35,723 | ) | (37,419 | ) | |||||||
| Expenses associated with debt repayments and refinancing transactions | (4,074 | ) | (226 | ) | (31,316 | ) | (226 | ) | |||||||
| Gain (loss) on sale of real estate assets, net | - | (25 | ) | 568 | (25 | ) | |||||||||
| Other income | 444 | 78 | 386 | 31 | |||||||||||
| INCOME BEFORE INCOME TAXES | 27,579 | 19,006 | 36,622 | 39,552 | |||||||||||
| Income tax expense | (8,625 | ) | (4,176 | ) | (8,125 | ) | (12,322 | ) | |||||||
| NET INCOME | $ | 18,954 | $ | 14,830 | $ | 28,497 | $ | 27,230 | |||||||
| BASIC EARNINGS PER SHARE | $ | 0.17 | $ | 0.13 | $ | 0.26 | $ | 0.24 | |||||||
| DILUTED EARNINGS PER SHARE | $ | 0.17 | $ | 0.13 | $ | 0.25 | $ | 0.24 | |||||||
CORECIVIC, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
CALCULATION OF ADJUSTED NET INCOME AND ADJUSTED DILUTED EPS
| For the Three Months Ended | For the Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net income | $ | 18,954 | $ | 14,830 | $ | 28,497 | $ | 27,230 | |||||||
| Special items: | |||||||||||||||
| Expenses associated with debt repayments and refinancing transactions | 4,074 | 226 | 31,316 | 226 | |||||||||||
| Income tax expense (benefit) associated with change in corporate tax structure | - | (1,378 | ) | - | 930 | ||||||||||
| Loss (gain) on sale of real estate assets, net | - | 25 | (568 | ) | 25 | ||||||||||
| Income tax benefit for special items | (1,277 | ) | (75 | ) | (9,635 | ) | (75 | ) | |||||||
| Adjusted net income | $ | 21,751 | $ | 13,628 | $ | 49,610 | $ | 28,336 | |||||||
| Weighted average common shares outstanding - basic | 110,954 | 113,628 | 111,630 | 113,840 | |||||||||||
| Effect of dilutive securities: | |||||||||||||||
| Restricted stock-based awards | 578 | 324 | 879 | 631 | |||||||||||
| Weighted average shares and assumed conversions - diluted | 111,532 | 113,952 | 112,509 | 114,471 | |||||||||||
| Adjusted Diluted EPS | $ | 0.20 | $ | 0.12 | $ | 0.44 | $ | 0.25 | |||||||
CORECIVIC, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
CALCULATION OF FUNDS FROM OPERATIONS AND NORMALIZED FUNDS FROM OPERATIONS
| For the Three Months Ended | For the Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net income | $ | 18,954 | $ | 14,830 | $ | 28,497 | $ | 27,230 | |||||||
| Depreciation and amortization of real estate assets | 24,843 | 24,198 | 49,627 | 48,369 | |||||||||||
| Loss (gain) on sale of real estate assets, net | - | 25 | (568 | ) | 25 | ||||||||||
| Income tax expense (benefit) for special items | - | (7 | ) | 178 | (7 | ) | |||||||||
| Funds From Operations | $ | 43,797 | $ | 39,046 | $ | 77,734 | $ | 75,617 | |||||||
| Expenses associated with debt repayments and refinancing transactions | 4,074 | 226 | 31,316 | 226 | |||||||||||
| Income tax expense (benefit) associated with change in corporate tax structure | - | (1,378 | ) | - | 930 | ||||||||||
| Income tax benefit for special items | (1,277 | ) | (68 | ) | (9,813 | ) | (68 | ) | |||||||
| Normalized Funds From Operations | $ | 46,594 | $ | 37,826 | $ | 99,237 | $ | 76,705 | |||||||
| Funds from Operations Per Diluted Share | $ | 0.39 | $ | 0.34 | $ | 0.69 | $ | 0.66 | |||||||
| Normalized Funds From Operations Per Diluted Share | $ | 0.42 | $ | 0.33 | $ | 0.88 | $ | 0.67 | |||||||
CORECIVIC, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
CALCULATION OF EBITDA AND ADJUSTED EBITDA
| For the Three Months Ended | For the Six Months Ended | |||||||||||
| June 30, | June 30, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Net income | $ | 18,954 | $ | 14,830 | $ | 28,497 | $ | 27,230 | ||||
| Interest expense | 20,060 | 21,214 | 42,118 | 43,303 | ||||||||
| Depreciation and amortization | 32,145 | 31,615 | 63,875 | 62,657 | ||||||||
| Income tax expense | 8,625 | 4,176 | 8,125 | 12,322 | ||||||||
| EBITDA | $ | 79,784 | $ | 71,835 | $ | 142,615 | $ | 145,512 | ||||
| Expenses associated with debt repayments and refinancing transactions | 4,074 | 226 | 31,316 | 226 | ||||||||
| Loss (gain) on sale of real estate assets, net | - | 25 | (568 | ) | 25 | |||||||
| Adjusted EBITDA | $ | 83,858 | $ | 72,086 | $ | 173,363 | $ | 145,763 | ||||
CORECIVIC, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
GUIDANCE -- CALCULATION OF ADJUSTED NET INCOME, FUNDS FROM OPERATIONS, NORMALIZED FUNDS FROM OPERATIONS, EBITDA & ADJUSTED EBITDA
| For the Year Ending | |||||||
| December 31, 2024 | |||||||
| Low End of Guidance | High End of Guidance | ||||||
| Net income | $ | 41,970 | $ | 50,389 | |||
| Expenses associated with debt repayments and refinancing transactions | 31,316 | 31,316 | |||||
| Gain on sale of real estate assets, net | (568 | ) | (568 | ) | |||
| Asset impairments | 3,600 | 3,000 | |||||
| Income tax benefit for special items | (10,718 | ) | (10,537 | ) | |||
| Adjusted net income | $ | 65,600 | $ | 73,600 | |||
| Net income | $ | 41,970 | $ | 50,389 | |||
| Depreciation and amortization of real estate assets | 100,000 | 101,000 | |||||
| Gain on sale of real estate assets, net | (568 | ) | (568 | ) | |||
| Impairment of real estate assets | 2,600 | 2,600 | |||||
| Income tax benefit for special items | (612 | ) | (612 | ) | |||
| Funds From Operations | $ | 143,390 | $ | 152,809 | |||
| Expenses associated with debt repayments and refinancing transactions | 31,316 | 31,316 | |||||
| Other asset impairments | 1,000 | 400 | |||||
| Income tax benefit for special items | (10,106 | ) | (9,925 | ) | |||
| Normalized Funds From Operations | $ | 165,600 | $ | 174,600 | |||
| Diluted EPS | $ | 0.37 | $ | 0.45 | |||
| Adjusted Diluted EPS | $ | 0.58 | $ | 0.66 | |||
| FFO per diluted share | $ | 1.28 | $ | 1.36 | |||
| Normalized FFO per diluted share | $ | 1.48 | $ | 1.56 | |||
| Net income | $ | 41,970 | $ | 50,389 | |||
| Interest expense | 80,750 | 79,750 | |||||
| Depreciation and amortization | 129,000 | 129,000 | |||||
| Income tax expense | 16,282 | 15,463 | |||||
| EBITDA | $ | 268,002 | $ | 274,602 | |||
| Expenses associated with debt repayments and refinancing transactions | 31,316 | 31,316 | |||||
| Gain on sale of real estate assets, net | (568 | ) | (568 | ) | |||
| Asset impairments | 3,600 | 3,000 | |||||
| Adjusted EBITDA | $ | 302,350 | $ | 308,350 | |||
NOTE TO SUPPLEMENTAL FINANCIAL INFORMATION
Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO, and, where appropriate, their corresponding per share metrics are non-GAAP financial measures. The Company believes that these measures are important operating measures that supplement discussion and analysis of the Company's results of operations and are used to review and assess operating performance of the Company and its properties and their management teams. The Company believes that it is useful to provide investors, security analysts, and other interested parties disclosures of its results of operations on the same basis that is used by management.
FFO, in particular, is a widely accepted non-GAAP supplemental measure of performance of real estate companies, grounded in the standards for FFO established by the National Association of Real Estate Investment Trusts (NAREIT). NAREIT defines FFO as net income computed in accordance with GAAP, excluding gains (or losses) from sales of property and extraordinary items, plus depreciation and amortization of real estate and impairment of depreciable real estate and after adjustments for unconsolidated partnerships and joint ventures calculated to reflect funds from operations on the same basis. As a company with extensive real estate holdings, we believe FFO and FFO per share are important supplemental measures of our operating performance and believe they are frequently used by securities analysts, investors and other interested parties in the evaluation of REITs and other real estate operating companies, many of which present FFO and FFO per share when reporting results. EBITDA, Adjusted EBITDA, and FFO are useful as supplemental measures of performance of the Company's properties because such measures do not take into account depreciation and amortization, or with respect to EBITDA, the impact of the Company's tax provisions and financing strategies. Because the historical cost accounting convention used for real estate assets requires depreciation (except on land), this accounting presentation assumes that the value of real estate assets diminishes at a level rate over time. Because of the unique structure, design and use of the Company's properties, management believes that assessing performance of the Company's properties without the impact of depreciation or amortization is useful. The Company may make adjustments to FFO from time to time for certain other income and expenses that it considers non-recurring, infrequent or unusual, even though such items may require cash settlement, because such items do not reflect a necessary or ordinary component of the ongoing operations of the Company. Normalized FFO excludes the effects of such items. The Company calculates Adjusted Net Income by adding to GAAP Net Income expenses associated with the Company’s debt repayments and refinancing transactions, and certain impairments and other charges that the Company believes are unusual or non-recurring to provide an alternative measure of comparing operating performance for the periods presented.
Other companies may calculate Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO differently than the Company does, or adjust for other items, and therefore comparability may be limited. Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO and, where appropriate, their corresponding per share measures are not measures of performance under GAAP, and should not be considered as an alternative to cash flows from operating activities, a measure of liquidity or an alternative to net income as indicators of the Company's operating performance or any other measure of performance derived in accordance with GAAP. This data should be read in conjunction with the Company's consolidated financial statements and related notes included in its filings with the Securities and Exchange Commission.
| Contact: | Investors: Mike Grant - Managing Director, Investor Relations - (615) 263-6957 Financial Media: David Gutierrez, Dresner Corporate Services - (312) 780-7204 | |
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